UPDATE 1-Mexico's Homex posts huge loss after debt troubles

Thu Jul 25, 2013 5:01pm EDT

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MEXICO CITY, July 25 (Reuters) - Mexican homebuilder Homex , which has struggled with a heavy debt load and flagging sales, reported a second quarter loss of 10.156 billion pesos ($782 million) on Thursday.

The Culiacan-based firm had a 572-million peso profit in the same period last year, the company said in a filing with the Mexican stock exchange.

Homex took a charge of 5.265 billion pesos related to its land inventory, as part of an adjustment under a new government housing plan that is prioritizing developments closer to city centers.

Revenue fell 84.4 percent to 1.114 billion pesos from the year-earlier quarter.

Homex, like its rivals Urbi and Geo, is trying to restructure its debt, after taking on loans to buy large tracts of suburban land where Mexicans no longer want to live.

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Comments (1)
wargeon wrote:
Please get your peso to dollar conversion correct.
As such, this article has no integrity, and appears to be biased to the negative side.

Jul 25, 2013 7:50pm EDT  --  Report as abuse
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